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the 5-year (or 7-year) presumption test period, intended "that a
taxpayer should be able to take full advantage of a statutory
presumption which was intended for his benefit", and understood
that the limited modification made by the 1976 Act had the effect
of removing the IRS's concern about restrictions on multiple
notices of deficiency for the same year. See S. Rept. 94-938
(Part 1), supra at 66-68, 1976-3 C.B. (Vol. 3) at 104-106. Thus,
we conclude that the Congress intended that an extension of the
statute of limitations would be a two-way street; i.e., an
extension of the assessment period should be accompanied by an
extension of the period of limitation for claiming a refund.
We concluded in Crawford v. Commissioner, 97 T.C. 302, 307
(1991), that we should harmonize sections 183 and 6501 by writing
section 183(e) into section 6501(a) for purposes of applying
section 6501(c)(4). Similarly, we should harmonize those
sections by writing section 183(e) into section 6501(c)(4).
Failure to do so would take away from taxpayers a benefit that
taxpayers had under the 1971 Act amendment and that was intended
to be left undisturbed by the 1976 Act amendment.
The dissenters suggest that this “statute appears to be
clear on its face” (infra p. 31) and that they champion “A
literal reading” thereof. Infra p. 36. With respect, we suggest
it is not so clear what the statutes mean.
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